FOR IMMEDIATE RELEASE
Finance Minister calls for collective effort to transform Ugandan businesses
Kampala, Uganda: 20th September, 2012….The Minister of Finance, Planning and Economic
Development, Hon. Maria Kiwanuka has urged players in both the private and public sectors to
join hands with the government in order to transform Ugandan and East African businesses into
model businesses with high standards of professionalism and integrity. The Minister also noted
that despite government’s efforts to improve the business environment, players must observe
good corporate governance; effective financial reporting practices as well as succession planning
in order to attain private sector competitiveness.
While addressing the high profile guests from the private and public sectors at the 10th
Kikonyogo Capital Markets Awards (KCMA), organised by the Capital Markets Authority (CMA) at
the Kampala Serena Hotel, Hon. Kiwanuka said, “Dynamics within the businesses are also critical
to the growth and competitiveness of these businesses. However much government improves
the business environment but when our entrepreneurs are not keen on good corporate
governance and financial reporting practices, and succession planning is not anywhere on their
radar screens, the private sector competitiveness we are looking for will never be realised.”
She commended Capital Markets Authority (CMA) and ACCA Uganda for their efforts in building
the capacity of the media through recognising them for their efforts, adding that the alliance
between journalists and the business community is more critical now than ever to the discussion
about financial literacy and consumer protection. Daily Monitor’s Faridah Kulabako and Samuel
Ssetumba of NTV emerged winners in this year’s print and electronic categories respectively.
Speaking at the same event, the CMA Board Chairman, Mr. Grace Jethro Kavuma said that
Uganda’s capital markets have registered growth in many aspects.
“In 2003 when the Authority started out with these awards, the size of the stock market
measured by market capitalization was just under UGX 1.5 trillion; as I speak now, the size of
Uganda’s stock market is over UGX 13 trillion. We are also increasingly seeing more private
companies accessing long-term finance through the corporate bond markets”, said Mr. Kavuma.
“Ten years ago there was no fund management industry. Today funds managed by the CMA
licensed fund managers are over UGX 350 billion of which about 50% are pension funds.”
8th Floor, Jubilee Insurance Centre, 14 Parliament Avenue, P. O. Box 24565 Kampala, UGANDA
Tel: +256 - 414 - 342 788, +256 312 - 264 950/1, Fax: +256 - 414 - 342 803
Email: info@cmauganda.co.ug, Website: www.cmauganda.co.ug
Recently, the Authority also approved the Uganda Securities Exchange Growth Enterprise
Market Segment (GEMS) which will provide opportunities for well governed SMEs with growth
potential to access long-term finance in Uganda’s capital markets.
He added, “We also believe these journalists will also be well equipped to sensitize the general
public about the opportunities of saving and investment in Uganda’s capital markets.” Bank of
Uganda’s Deputy Governor, Dr. Louis Kasekende praised the Late Governor Kikonyogo for his
remarkable contribution to Uganda’s financial sector, particularly the capital markets, and
thanked CMA for honouring the fallen governor.
In his key note address, renowned East African entrepreneur, Mr. Ali Mufuruki, also founder of
the African Leadership Initiative-East Africa and owner of the Woolworth franchise in Uganda
and Tanzania pointed out that African businesses today face a big challenge of lack of a proper
governance code, and thus, “The governance code we use in most of our companies can be best
described as "the village or tribal governance code", where we rely on the one instinct we trust
the most when faced with tough choices, be them corporate, political or personal.”
“This is the instinct that derives from our own culture, our traditions, our family and ethnic
networks”, he noted.
He said that businesses need to observe the role culture and tradition play and how this
influences governance at the corporate level. Mufuruki urged players in the business sector to
adopt modern and globally accepted governance codes in a culturally sustainable way, to enable
companies get a chance at attracting partnerships with global players for the much needed
capital, as well as technology and skills in order to transform African businesses from family
owned, thinly capitalized and poorly run micro-entities to large, well run, diversely owned and
well financed global corporations that will enable us(East Africa) and Africa as a whole to claim
our rightful place in the global economy.
“I propose that we should take a closer look at ourselves, our cultures, our traditions and
attitudes and use this knowledge to choose and develop the most suitable governance codes
and enforcement mechanisms for our peculiar environment”, urged Mufuruki.
“Education and exposure make it easier for people to be receptive to concepts that are alien to
them from a cultural stand point, once they grasp the benefits.”
Ends…
For further inquiries, please contact:
Ann Muhangi
Email: amuhangi@cmauganda.co.ug
Tel: +256-414-342 788/312-264-950
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Editor’s notes
About CMA
The Capital Markets Authority (CMA) is a semi autonomous body responsible for promoting,
developing and regulating the capital markets industry in Uganda, with the overall objectives of
investor protection and market efficiency. CMA is governed by a Board of Directors comprising a
Chairperson and representatives from the private and public sector. The day to day operations of
the Authority are handled by the Chief Executive Officer and a team of professionals from various
fields.
CMA vision: To make Uganda's capital markets the center of choice for capital raising and
investment in the region.
CMA mission: To regulate and promote a robust, transparent, fair and efficient capital market in
Uganda.
CMA Mandate: The development of all aspects of the capital markets with particular emphasis on
the removal of impediments to, and the creation of incentives for longer term investments in
productive enterprises. The creation, maintenance and regulation, through implementation of a
system in which the markets participants are self regulatory to the maximum practicable extent, and
of a market in which securities can be issued and traded in an orderly, fair and efficient manner. The
protection of investor interests. The operation of an Investor Compensation Fund.
CMA Profile: The Capital Markets Authority (CMA) was established in 1996 following the enactment
of the Capital Markets Authority Statute 1996. It is an autonomous body responsible for promoting,
developing and regulating the capital markets industry in Uganda, with the overall objectives of
investor protection and market efficiency.
About KCMA
Capital Market Authority (CMA) initiated the Kikonyogo Capital Markets Award (KCMA) in 2003 in
recognition of the contribution of the late Governor Mr. Charles N. Kikonyogo (RIP), for his tireless
efforts to the establishment and growth of capital markets in Uganda. Organised annually, the
Award seeks to recognise an individual(s) who has made an exceptional contribution to the growth
and/or development of the capital markets industry and thus emulated the example of the late
Governor.
Mr. Charles N. Kikonyogo (RIP) has a very special place in the capital markets industry and in
particular the CMA. He was not only a key member in the pioneer Board of the Authority, but was
also exceptionally instrumental in negotiating and harnessing Central Bank support for CMA.
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The Award also instituted the Financial Journalists Award, and for the last three years, the KCMA has
been awarding financial journalists that have excelled in their work and hence contributed to
building the industry.
This year, 2012, the KCMA marks its 10th anniversary, and the event shall be held under the theme,
“Africa, the next growth frontier”. Uganda’s Minister of Finance, planning and Economic
Development, Hon. Maria Kiwanuka was the chief guest, while renowned East African entrepreneur
and founder of the African Leadership Initiative- East Africa, Ali Mufuruki was the key note speaker.
The 2012 KCMA had two categories; that is the print and electronic media categories. There were six
entries for the print category and four entries in the electronic category.
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